BP reported the following key financial highlights for 2024.
BP announced a profit of $3 billion for the fourth quarter, which was above forecasts. The company also committed to share buybacks, with $3.5 billion announced for the first half of 2024 and a total of $14 billion expected through 2024-2025. The full year 2024 profit was $13.8 billion, half of what it was the previous year, influenced by cooling oil and gas prices and weakened refining margins.
Throughout 2024, BP faced a challenging environment with fluctuating oil and gas prices but managed to exceed some profit expectations in certain quarters despite the downturn. The company focused on shareholder returns through dividends and share buybacks while navigating through operational and market challenges.
These results reflect BP’s strategic adjustments, including a focus on high-margin operations and investments in both traditional and low-carbon energy sectors. However, the exact figures and strategic directions are subject to the finalization of BP’s financial reporting processes, and actual outcomes could vary.
BP’s strategy for 2025 and beyond involves a multi-faceted approach to balance traditional oil and gas operations with investments in renewable energy sectors. BP has adjusted its strategy to increase focus on oil and gas production, particularly in regions like the U.S. Gulf of Mexico (Gulf of America) and the Middle East.
The company plans to abandon its previous target of reducing oil and gas output by 40% by 2030, instead focusing on maintaining or slightly increasing production to meet current energy demands. BP expects refining margins to stabilize, with plans for operational efficiency and cost management. The company continues to aim for divestment proceeds with a cumulative target of $25 billion from 2020 to 2025, focusing on high-grading its portfolio.
BP targets to develop around 50 gigawatts (GW) of net renewable generating capacity by 2030, with an adjustment in 2024 lowering the target for renewables capacity to 10-12 GW from a previous 12-16 GW. The company is expanding its network of electric vehicle (EV) charging points, aiming for over 100,000 by 2030, with a significant portion being fast or ultra-fast chargers. BP is also focusing on producing sustainable aviation fuel, aligning with the broader decarbonization trend in aviation.
BP aims to maintain financial discipline with capital expenditures, planning for $14-18 billion annually out to 2030, with a focus on both traditional and transition sectors. BP has committed to share buybacks, planning for $4 billion annually at a certain oil price level, alongside maintaining or growing dividends. The company intends to manage its net debt, aiming to reduce it to specific targets while maintaining an investment-grade credit rating.
In response to investor pressures and market dynamics, BP announced a strategic reset for 2025, focusing on cash flow, returns, and operational efficiency while still advancing in its transition growth engines. This strategy reflects BP’s response to both current energy market conditions and long-term sustainability goals, aiming to balance immediate profitability with future-proofing against the energy transition. However, with the dynamic nature of energy markets and policy environments, these plans remain subject to adjustments based on future conditions and BP’s performance.
Throughout 2024, BP sanctioned 10 major projects and secured important new access, while stopping or pausing more than 20 projects.
Kaskida in the Gulf of America, with its cutting-edge floating production platform, is expected to produce 80,000 barrels of oil per day by 2029, unlocking the potential of 10 billion barrels of discovered resources.
BP made a final investment decision on Tangguh UCC project, Indonesia’s first at-scale enhanced gas recovery using carbon capture, utilization and storage (CCUS). The investment is expected to unlock around 3 trillion cubic feet of additional gas resources.
The company established a new joint venture between BP and XRG, ADNOC’s investment company. The international natural gas platform, Arcius Energy, will operate in Egypt, building on bp’s 60 years of technical expertise and delivery of safe and efficient operations there.
Gas started flowing in December at BP’s Greater Tortue Ahmeyim (GTA) project off the coast of West Africa (in Mauritania and Senegal). Once fully commissioned, it is set to produce 2.3 million tonnes of LNG annually.
BP is looking at new opportunities for the redevelopment of several oilfields in Kirkuk, spanning oil, gas, power and water. Kirkuk is estimated to hold about 9 billion barrels of recoverable oil. The company has signed a contract with India’s Oil and Natural Gas Corporation to provide technical services at Mumbai High – India’s largest and most prolific offshore oil and gas field responsible for around 25% of the country’s oil production.
BP started up our seventh oil-producing platform in the giant ACG field in the Caspian Sea. The Azeri Central East (ACE) project will process up to 100,000 barrels of oil per day. It is one of the world’s most technologically advanced platforms, with remote operations from onshore. This year marked the start-up of one of our most technologically advanced platforms. Azeri Central East, in the Caspian Sea, is designed to produce up to 100,000 barrels of oil per day, and is a model for future platforms, with its control room located onshore.
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